Airbus SEFRA:AIRA +3.32%88 Return-on-Tangible-Equity is 25.33% as of Mar. 2026, which is 86% below its 10-year median of 177.23. GuruFocus rates FRA:AIRA with a GF Score™ of 88/100 and a GF Value™ of €43.61 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 334 Aerospace & Defense companies, Airbus SE ranks better than 86.53% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Airbus SE's annualized net income for the quarter that ended in Mar. 2026 was €2,344 Mil. Airbus SE's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €9,256 Mil. Therefore, Airbus SE's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 25.33%.
The historical rank and industry rank for Airbus SE's Return-on-Tangible-Equity or its related term are showing as below:
FRA:AIRA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 69.33 Med: 177.23 Max: 265.08
Current: 69.33
During the past 13 years, Airbus SE's highest Return-on-Tangible-Equity was 265.08%. The lowest was 69.33%. And the median was 177.23%.
FRA:AIRA's Return-on-Tangible-Equity is ranked better than 86.53% of 334
companies
in the Aerospace & Defense industry
Industry Median: 8.195
vs FRA:AIRA: 69.33
Airbus SE (FRA:AIRA) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Airbus SE Return-on-Tangible-Equity Related Terms
Airbus SE Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Airbus SE's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:AIRA vs SPCX, GE, RTX: Return-on-Tangible-Equity Comparison
For the Aerospace & Defense subindustry, Airbus SE's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Airbus SE Return-on-Tangible-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Airbus SE's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Airbus SE's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 25.33% mean?
Airbus SE (FRA:AIRA) has a Return-on-Tangible-Equity of 25.33% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Airbus SE and its competitors. This is 86% below median its historical median of 177.23. Over the past decade, Airbus SE's Return-on-Tangible-Equity has ranged from 69.33 to 265.08. According to the industry distribution chart, Airbus SE ranks #45 out of 334 companies in the Aerospace & Defense industry, placing it in the top 13.5%.
Is Airbus SE's Return-on-Tangible-Equity too high?
Airbus SE's current Return-on-Tangible-Equity of 25.33% is 86% below median its 10-year median of 177.23. Over the past 10 years, this metric has ranged from a low of 69.33 to a high of 265.08. The Aerospace & Defense industry median Return-on-Tangible-Equity is 8.20. Airbus SE's value of 25.33% is 209.1% above this industry median. Based on the distribution chart, Airbus SE ranks #45 out of 334 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Airbus SE has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Airbus SE's Return-on-Tangible-Equity compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Airbus SE ranks #45 out of 334 companies for Return-on-Tangible-Equity. This places Airbus SE in the top 14% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.20. Airbus SE's value of 25.33% is 209.1% above this benchmark. Historically, Airbus SE's own Return-on-Tangible-Equity has ranged from 69.33 to 265.08 over the past decade. While the company's 10-year median is 177.23 vs. the industry median of 8.20, Airbus SE has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Aerospace & Defense company?
The median Return-on-Tangible-Equity among Aerospace & Defense companies is 8.20, based on 334 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Airbus SE's current Return-on-Tangible-Equity of 25.33% is 209.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Airbus SE and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Equity is 8.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Airbus SE's current Return-on-Tangible-Equity is 25.33%, which is 86% below median its own 10-year median of 177.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Airbus SE stock overvalued right now?
Based on GuruFocus' analysis, Airbus SE (FRA:AIRA) is currently considered Modestly Overvalued. The stock's GF Value™ is €43.61, compared to a current price of €49.80 — trading 14.2% above its estimated fair value. The current Return-on-Tangible-Equity is 25.33%, which is 86% below median its 10-year median of 177.23 and 209.1% above the Aerospace & Defense industry median of 8.20. Airbus SE's overall GF Score™ is 88/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Airbus SE (FRA:AIRA), the current Return-on-Tangible-Equity is 25.33% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Airbus SE (FRA:AIRA) Overvalued in 2026?
Based on GuruFocus' analysis, Airbus SE stock appears to be overvalued.
The current stock price of €49.80 is trading 14.2% above its estimated GF Value™ of €43.61.
GuruFocus considers Airbus SE to be Modestly Overvalued.
Key valuation signals for FRA:AIRA:
Return-on-Tangible-Equity: 25.33% (86% below median its 10-year median of 177.23)
GF Value™: €43.61 vs. price of €49.80 (14.2% above fair value)
Industry Position: 209.1% above the Aerospace & Defense median (#45 of 334)
No single metric tells the full story. See the FRA:AIRA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Airbus is a global aerospace and defense firm that designs, develops, and manufactures commercial and military jets and helicopters, as well as space launch vehicles and satellites. The company operates three divisions: commercial, defense and space, and helicopters. Commercial offers multiple configurations of aircraft ranging from the narrow-body (120-200 seats) A220 and A320 series to the much larger A330 and A350 wide-body models. The defense and space segment supplies governments with military hardware, including transport aircraft, aerial tankers, and the Eurofighter Typhoon multirole jet. The helicopter division manufactures turbine helicopters for the civil and public markets.
88GF Score
Get the complete analysis for FRA:AIRA
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:AIRA has been successfully added to your 
